The special court for CBI cases here dismissed Prasad`s bail plea with the investigating agency urging the court against granting any relief to the businessman contending that the investigations into VANPIC (Vodarevu and Nizampatnam Ports and Industrial Corridor) project have reached a crucial phase.

According to CBI, Prasad, as chairman of Matrix Group, got nearly 24,000 acres of land sanctioned by Andhra Pradesh government for VANPIC project as quid pro quo for investments made by him in Jagan`s businesses when Y S Rajasekhara Reddy was chief minister.

Prasad requested the court to grant him bail on the ground that CBI has completed its probe in the case and he has extended all cooperation to the agency. However, the court turned down his application.

According to CBI, Prasad is accused of exaggerating to the tune of Rs 300 crore the land acquisition cost for Vanpic Project.

Prasad incorporated Matrix Enport Holdings Pvt Ltd during December 2007-January 2008 and the next month the government of RAK (Ras Al Khaimah) addressed Andhra Pradesh government for creation of the proposed Vanpic project on government-to-government basis, the agency had said.